Assessee is  engaged in business of providing software support and development services and ITeS. It had paid sales commission to its US subsidiary towards selling and marketing services and had not deducted TDS on same.  Assessing Officer held that said payment was towards FTS since 85 per cent of revenue of assessee was generated from exports and made disallowance of sales commission under section 40(a)(i) for reason that assessee had not deducted tax at source on said amount under section 195. CIT(A) deleted the disallowance. The Tribunal held that in assessee’s own case for earlier assessment years, Tribunal held that sales and marketing services would not fall within ambit of FTS as defined under section 9(1)(vii) or under article 12 of DTAA between India and USA. There is  no liability to deduct tax towards sales commission paid by assessee to its US subsidiary and, accordingly, no dis-allowance was warranted under section 40(a)(i). Order of CIT(A) is affirmed. (AY.2016-17 to 2018-19)